Negotiated cash fed cattle trade remained undeveloped through Friday afternoon, with too few transactions to trend on limited trade and light demand up north—a standstill in Colorado and the Texas Panhandle. There were a few early live sales reported in the western Corn Belt Thursday at $106.00-$108.50/cwt.; a few early dressed sales at $170.
Cattle futures softened Friday, pressured by lower wholesale beef values and thoughts that negotiated cash fed cattle prices could lose ground.
However, Monday’s strong surge—due in part to the announced trade pact between the U.S. and Mexico—was enough to boost Cattle futures slightly higher week to week.
Other than $3 lower in expiring spot Aug, Live Cattle futures closed an average of 34¢ lower.
Feeder Cattle futures closed an average of $1.23 lower.
Wholesale beef values were lower to sharply lower on light to moderate demand and offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $2.04 lower Friday afternoon at $209.69/cwt. Select was 94¢ lower at $201.27.
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Major U.S. financial indices closed narrowly mixed Friday, following strong pressure early from reports that the U.S. and Canada had yet to reach a trade deal. Tech stocks, including Apple and Amazon, provided support.
The Dow Jones Industrial Average closed 22 points lower. The S&P 500 closed fractionally higher. The NASDAQ was up 21 points.
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Wholesale beef values appeared to begin their seasonal slide last week with Choice boxed beef cutout value $3.63 lower week to week on Friday at $209.69/cwt. and Select $2.55 lower at $201.27.
“Demand for beef can and likely will remain strong, but wholesale beef prices will still succumb to downward pressure,” says Andrew P. Griffith, agricultural economist at the University of Tennessee, in his weekly market comments. “Lower wholesale prices should not be interpreted negatively as this is a seasonal trend and prices are expected to be relatively strong for the time of year and the quantity of beef products available.”